Netflix’s advertising segment is rapidly gaining momentum, despite the company previously avoiding ads. In 2025, ad revenue surged 150% to $1.5 billion, although it still accounts for only about 3% of total revenue. This growth has been driven by the popularity of the lower-cost ad-supported subscription tier, which has already attracted tens of millions of users.

Overall, the company’s business remains strong: in 2025, Netflix added about 23 million new subscribers, and net income rose 26%. The platform now has over 325 million users and captures a significant share of TV viewing time in the U.S., making it highly attractive to advertisers. The company is also developing its own advertising platform and активно leveraging artificial intelligence technologies.

However, despite its success, growth may slow down. Management expects revenue to increase by around 13% in 2026, which is lower than the previous year’s pace. At the same time, Netflix shares are trading at a high valuation, reflecting elevated market expectations and increasing risks if results disappoint.

Analysts note that at current levels, the stock is hard to consider a no-brainer buy. Despite innovation and expansion into new areas, strong competition and slowing growth make Netflix a less attractive investment compared to other opportunities.